VCA Inc. Reports Third Quarter 2016 Results and Re-Affirms Financial Guidance for 2016
October 26 2016 - 8:00AM
VCA Inc. (NASDAQ:WOOF), a leading animal
healthcare company in the United States and Canada, today reported
financial results for the third quarter ended September 30, 2016,
as follows: revenue increased 19.1% to a third quarter record of
$656.9 million; gross profit increased 13.7% to $156.6 million;
operating income increased 10.2% to $107.0 million; net income
increased 6.2% to $58.2 million; and diluted earnings per common
share increased 6.0% to $0.71. Excluding transaction expenses
related to the acquisition of Companion Animal Practices, North
America (“CAPNA”), and acquisition-related amortization expense,
our results for this quarter are as follows: Non-GAAP operating
income increased 19.8% to $117.8 million; Non-GAAP net income
increased 15.7% to $64.4 million; and Non-GAAP diluted earnings per
common share increased 16.2% to $0.79. Our results for the
prior-year quarter included business interruption proceeds of $4.5
million, $2.8 million net of tax, or $0.03 per diluted common
share.
We also reported our financial results for the nine
months ended September 30, 2016 as follows: revenue increased 17.1%
to $1.9 billion; gross profit increased 16.5% to $457.3 million;
operating income increased 17.4% to $309.1 million; net income
increased 14.3% to $168.5 million; and diluted earnings per common
share increased 15.7% to $2.06. Excluding acquisition-related
amortization expense and other items detailed in the supplemental
tables included in this press release, our financial results for
the nine months ended September 30, 2016, on a Non-GAAP basis, are
as follows: gross profit increased 17.8% to $482.1 million;
operating income increased 22.8% to $339.1 million; net income
increased 21.7% to $188.8 million; and Non-GAAP diluted earnings
per common share increased 22.9% to $2.31.
Bob Antin, Chairman and CEO, stated, "We had an
outstanding quarter highlighted by 16.2% growth in our adjusted
diluted earnings per common share. We continue to experience
healthy organic revenue growth and increasing gross margins in both
our core Animal Hospital and Laboratory businesses. Given our
results relative to our expectations and our future acquisition
pipeline, we remain optimistic with respect to our results for the
full year ended December 31, 2016.
"Animal Hospital revenue in the third quarter
increased 25.2%, to $553.4 million, driven by acquisitions made
during the past 12 months and same-store revenue growth of
5.4%. Our same-store gross profit margin increased 50 basis
points to 17.5%, and our total gross margin remained flat at 17.0%.
Excluding acquisition-related amortization expense, our Non-GAAP
same-store gross profit margin increased 40 basis points to 18.4%;
and Non-GAAP Animal Hospital total gross profit margin increased 50
basis points to 18.5%. During the 2016 third quarter, we acquired
12 independent animal hospitals which had historical combined
annual revenue of $38 million bringing our year to date total,
excluding CAPNA, to 49 independent animal hospitals with historical
combined annual revenue of $146 million.
"Our Laboratory internal revenue in the third
quarter increased 5.5% to $105.1 million; laboratory gross profit
margin increased 40 basis points to 51.6% and our operating margin
increased 60 basis points to 42.3%. Excluding acquisition-related
amortization expense, Non-GAAP Laboratory gross profit increased 20
basis points to 51.9%; and Non-GAAP Laboratory operating margin
increased 60 basis points to 42.7%."
2016 Guidance
We reaffirm our previously provided guidance as
follows:
- Revenue from $2.52 billion to $2.54 billion;
- Net income from $210 million to $218 million;
- Diluted earnings per common share from $2.57 to $2.67;
and
- Non-GAAP diluted earnings per common share from $2.87 to
$2.97.
Non-GAAP Financial Measures
We believe investors’ understanding of our total
performance is enhanced by disclosing Non-GAAP financial measures
including Non-GAAP net income, Non-GAAP gross profit, Non-GAAP
operating income and Non-GAAP diluted earnings per common share. We
define these adjusted measures as the reported amounts, adjusted to
exclude certain significant items and amortization of intangibles
acquired in acquisitions.
Management believes these adjusted measures are
useful to management and investors in evaluating the Company's
operational performance and their use provides an additional tool
for evaluating the Company's operating results and trends. As
a result, these Non-GAAP financial measures help to provide
meaningful comparisons of our overall performance from one
reporting period to another and meaningful assessments of related
trends.
There is a material limitation associated with the
use of these Non-GAAP financial measures: our adjusted measures
exclude the impact of these significant items, and as a result, our
computation of adjusted diluted earnings per common share does not
depict diluted earnings per common share in accordance with
GAAP.
To compensate for the limitations in the Non-GAAP
financial measures discussed above, our disclosures provide a
complete understanding of all adjustments found in Non-GAAP
financial measures, and we reconcile the Non-GAAP financial
measures to the GAAP financial measures in the attached financial
schedules titled “Supplemental Operating Data.”
Conference Call
We will discuss our third quarter 2016 financial
results during a conference call today, October 26th, at 9:00 a.m.
Eastern Time. A live broadcast of the call may be accessed by
visiting our website at investor.vca.com. The call may also be
accessed by dialing (877) 293-5492 (domestic) or (720) 545-0007
(international) and referring to conference ID
82975258. Interested parties should call at least five minutes
prior to the start of the call to register. Replay of the webcast
will be available for one year by visiting the company's
website.
Forward-Looking Statements
This press release contains forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995. Among the forward-looking statements in
this press release are statements addressing our 2016 guidance and
plans, expectations, future financial position and results of
operation. These forward-looking statements are not
historical facts and are inherently uncertain and out of our
control. Any or all of our forward-looking statements in this
press release may turn out to be wrong. They can be affected
by inaccurate assumptions we might make or by known or unknown
risks and uncertainties. Actual future results may vary
materially. Among other factors that could cause our actual
results to differ from this forward-looking information are: the
continued effects of the economic uncertainty prevailing in regions
in which we operate; our ability to execute on our growth strategy
and to manage acquired operations; changes in demand for our
products and services; fluctuations in our revenue adversely
affecting our gross profit, operating income and margins; a
material adverse change in the financial condition or operations of
the company; the ability to successfully integrate CAPNA into VCA
and achieve expected operating synergies following the acquisition;
and the effects of the other factors discussed in our Annual Report
on Form 10-K, Reports on Form 10-Q and our other filings with the
SEC.
About VCA Inc.
We own, operate and manage the largest networks of
freestanding veterinary hospitals and veterinary-exclusive clinical
laboratories in the country. We also supply diagnostic imaging
equipment to the veterinary industry.
|
|
|
|
|
VCA
Inc.Condensed, Consolidated Income
Statements(Unaudited)(In
thousands, except per share amounts) |
|
|
|
|
|
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
|
2016 |
|
2015 |
|
2016 |
|
2015 |
Revenue: |
|
|
|
|
|
|
|
|
Animal hospital |
|
$ |
553,378 |
|
|
$ |
441,924 |
|
|
$ |
1,552,377 |
|
|
$ |
1,270,326 |
|
Laboratory |
|
105,140 |
|
|
100,309 |
|
|
323,927 |
|
|
300,503 |
|
All other |
|
22,987 |
|
|
30,838 |
|
|
65,797 |
|
|
93,734 |
|
Intercompany |
|
(24,651 |
) |
|
(21,354 |
) |
|
(68,319 |
) |
|
(64,608 |
) |
|
|
656,854 |
|
|
551,717 |
|
|
1,873,782 |
|
|
1,599,955 |
|
|
|
|
|
|
|
|
|
|
Direct costs |
|
500,277 |
|
|
414,051 |
|
|
1,416,477 |
|
|
1,207,580 |
|
|
|
|
|
|
|
|
|
|
Gross profit: |
|
|
|
|
|
|
|
|
Animal hospital |
|
94,136 |
|
|
74,941 |
|
|
262,232 |
|
|
203,810 |
|
Laboratory |
|
54,206 |
|
|
51,408 |
|
|
171,469 |
|
|
156,093 |
|
All other |
|
8,921 |
|
|
11,761 |
|
|
24,748 |
|
|
34,574 |
|
Intercompany |
|
(686 |
) |
|
(444 |
) |
|
(1,144 |
) |
|
(2,102 |
) |
|
|
156,577 |
|
|
137,666 |
|
|
457,305 |
|
|
392,375 |
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expense: |
|
|
|
|
|
|
|
|
Animal hospital |
|
15,541 |
|
|
10,677 |
|
|
41,903 |
|
|
32,351 |
|
Laboratory |
|
9,728 |
|
|
9,542 |
|
|
29,726 |
|
|
27,894 |
|
All other |
|
6,064 |
|
|
7,660 |
|
|
17,385 |
|
|
24,088 |
|
Corporate |
|
18,010 |
|
|
16,981 |
|
|
58,647 |
|
|
49,410 |
|
|
|
49,343 |
|
|
44,860 |
|
|
147,661 |
|
|
133,743 |
|
|
|
|
|
|
|
|
|
|
Business interruption
insurance proceeds, net |
|
— |
|
|
(4,523 |
) |
|
— |
|
|
(4,523 |
) |
Net loss (gain) on sale
or disposal of assets |
|
236 |
|
|
250 |
|
|
528 |
|
|
(234 |
) |
Operating income |
|
106,998 |
|
|
97,079 |
|
|
309,116 |
|
|
263,389 |
|
Interest expense,
net |
|
9,300 |
|
|
5,455 |
|
|
24,262 |
|
|
15,396 |
|
Debt retirement
costs |
|
— |
|
|
— |
|
|
1,600 |
|
|
— |
|
Other (income)
expense |
|
(121 |
) |
|
59 |
|
|
(985 |
) |
|
88 |
|
Income before provision
for income taxes |
|
97,819 |
|
|
91,565 |
|
|
284,239 |
|
|
247,905 |
|
Provision for income
taxes |
|
37,040 |
|
|
35,097 |
|
|
109,312 |
|
|
95,961 |
|
Net income |
|
60,779 |
|
|
56,468 |
|
|
174,927 |
|
|
151,944 |
|
Net income attributable
to noncontrolling interests |
|
2,548 |
|
|
1,614 |
|
|
6,419 |
|
|
4,490 |
|
Net income attributable
to VCA Inc. |
|
$ |
58,231 |
|
|
$ |
54,854 |
|
|
$ |
168,508 |
|
|
$ |
147,454 |
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share |
|
$ |
0.71 |
|
|
$ |
0.67 |
|
|
$ |
2.06 |
|
|
$ |
1.78 |
|
|
|
|
|
|
|
|
|
|
Weighted-average shares
outstanding for diluted earnings per share |
|
81,812 |
|
|
81,795 |
|
|
81,695 |
|
|
82,744 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
VCA
Inc.Condensed, Consolidated Balance
Sheets(Unaudited)(In
thousands) |
|
|
|
|
|
|
|
September 30, 2016 |
|
December 31, 2015 |
Assets |
|
|
|
|
Current assets: |
|
|
|
|
Cash and cash equivalents |
|
$ |
72,914 |
|
|
$ |
98,888 |
|
Trade accounts receivable, net |
|
82,166 |
|
|
76,634 |
|
Inventory |
|
60,811 |
|
|
51,523 |
|
Prepaid expenses and other |
|
33,905 |
|
|
30,521 |
|
Prepaid income taxes |
|
— |
|
|
24,598 |
|
Total current assets |
|
249,796 |
|
|
282,164 |
|
Property and equipment,
net |
|
582,840 |
|
|
507,753 |
|
Other assets: |
|
|
|
|
Goodwill |
|
2,063,494 |
|
|
1,517,650 |
|
Other intangible assets, net |
|
209,095 |
|
|
97,377 |
|
Notes receivable |
|
2,142 |
|
|
2,194 |
|
Other |
|
101,695 |
|
|
93,994 |
|
Total assets |
|
$ |
3,209,062 |
|
|
$ |
2,501,132 |
|
Liabilities and Equity |
|
|
|
|
Current
liabilities: |
|
|
|
|
Current portion of long-term
debt |
|
$ |
32,512 |
|
|
$ |
33,623 |
|
Accounts payable |
|
54,150 |
|
|
52,337 |
|
Accrued payroll and related
liabilities |
|
70,213 |
|
|
75,519 |
|
Income tax payable |
|
8,359 |
|
|
— |
|
Other accrued liabilities |
|
85,607 |
|
|
70,828 |
|
Total current liabilities |
|
250,841 |
|
|
232,307 |
|
Long-term debt,
net |
|
1,246,122 |
|
|
832,718 |
|
Deferred income
taxes |
|
127,104 |
|
|
131,478 |
|
Other liabilities |
|
39,509 |
|
|
36,084 |
|
Total liabilities |
|
1,663,576 |
|
|
1,232,587 |
|
Redeemable
noncontrolling interests |
|
12,079 |
|
|
11,511 |
|
VCA Inc. stockholders’
equity: |
|
|
|
|
Common stock |
|
81 |
|
|
81 |
|
Additional paid-in capital |
|
32,958 |
|
|
19,708 |
|
Retained earnings |
|
1,443,715 |
|
|
1,275,207 |
|
Accumulated other comprehensive
loss |
|
(41,028 |
) |
|
(50,034 |
) |
Total VCA Inc. stockholders’
equity |
|
1,435,726 |
|
|
1,244,962 |
|
Noncontrolling
interests |
|
97,681 |
|
|
12,072 |
|
Total equity |
|
1,533,407 |
|
|
1,257,034 |
|
Total liabilities and equity |
|
$ |
3,209,062 |
|
|
$ |
2,501,132 |
|
|
|
|
|
|
|
|
|
|
|
|
VCA
Inc.Condensed, Consolidated Statements of Cash
Flows(Unaudited)(In
thousands) |
|
|
|
Nine Months Ended September 30, |
|
2016 |
|
2015 |
Cash flows from
operating activities: |
|
|
|
Net income |
$ |
174,927 |
|
|
$ |
151,944 |
|
Adjustments to reconcile net income
to net cash provided by operating activities: |
|
|
|
Depreciation and amortization |
74,072 |
|
|
60,634 |
|
Amortization of debt issue
costs |
1,247 |
|
|
1,306 |
|
Provision for uncollectible
accounts |
4,949 |
|
|
6,723 |
|
Debt retirement costs |
1,600 |
|
|
— |
|
Net loss (gain) on sale or disposal
of assets |
528 |
|
|
(234 |
) |
Share-based compensation |
13,669 |
|
|
12,086 |
|
Excess tax benefit from share-based
compensation |
(7,588 |
) |
|
(8,008 |
) |
Other |
7,668 |
|
|
(431 |
) |
Changes in operating assets and
liabilities: |
|
|
|
Trade accounts receivable |
(8,033 |
) |
|
(20,568 |
) |
Inventory, prepaid expense and
other assets |
(11,684 |
) |
|
(931 |
) |
Accounts payable and other accrued
liabilities |
11,142 |
|
|
(2,451 |
) |
Accrued payroll and related
liabilities |
(7,783 |
) |
|
18,892 |
|
Income taxes |
36,168 |
|
|
28,054 |
|
Net cash provided by operating
activities |
290,882 |
|
|
247,016 |
|
Cash flows from investing
activities: |
|
|
|
Business acquisitions, net of cash
acquired |
(599,655 |
) |
|
(119,336 |
) |
Property and equipment
additions |
(90,546 |
) |
|
(61,470 |
) |
Proceeds from sale of assets |
1,699 |
|
|
6,469 |
|
Other |
(7,634 |
) |
|
(434 |
) |
Net cash used in investing
activities |
(696,136 |
) |
|
(174,771 |
) |
Cash flows from financing
activities: |
|
|
|
Repayment of long-term debt |
(1,263,394 |
) |
|
(20,174 |
) |
Proceeds from issuance of long-term
debt |
1,255,000 |
|
|
— |
|
Proceeds from revolving credit
facility |
465,000 |
|
|
97,000 |
|
Repayment of revolving credit
facility |
(65,000 |
) |
|
— |
|
Payment of financing costs |
(3,817 |
) |
|
— |
|
Distributions to noncontrolling
interest partners |
(4,752 |
) |
|
(3,810 |
) |
Purchase of noncontrolling
interests |
(4,239 |
) |
|
(1,493 |
) |
Proceeds from issuance of common
stock under stock option plans |
3,949 |
|
|
1,571 |
|
Excess tax benefit from share-based
compensation |
7,588 |
|
|
8,008 |
|
Repurchase of common stock |
(9,887 |
) |
|
(161,117 |
) |
Other |
(1,310 |
) |
|
2,210 |
|
Net cash provided (used) in
financing activities |
379,138 |
|
|
(77,805 |
) |
Effect of currency
exchange rate changes on cash and cash equivalents |
142 |
|
|
(831 |
) |
Decrease in cash and
cash equivalents |
(25,974 |
) |
|
(6,391 |
) |
Cash and cash
equivalents at beginning of period |
98,888 |
|
|
81,383 |
|
Cash and cash
equivalents at end of period |
$ |
72,914 |
|
|
$ |
74,992 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
VCA Inc.Supplemental
Operating Data(Unaudited - In thousands, except
per share amounts) |
|
|
|
|
|
|
|
|
Table
#1 |
|
|
|
|
|
|
|
Reconciliation
of net income attributable to |
Three Months Ended |
|
Nine Months Ended |
VCA Inc., to Non-GAAP net
income attributable |
September 30, |
|
September 30, |
to VCA Inc.
(1) |
|
2016 |
|
|
|
2015 |
|
|
|
2016 |
|
|
|
2015 |
|
|
|
|
|
|
|
|
|
Net income attributable
to VCA Inc. |
$ |
58,231 |
|
|
$ |
54,854 |
|
|
$ |
168,508 |
|
|
$ |
147,454 |
|
Adjustments to Other Long-term
liabilities, net of tax (2) |
|
— |
|
|
|
— |
|
|
2,040 |
|
|
— |
|
Discrete tax items (3) |
|
— |
|
|
|
— |
|
|
1,045 |
|
|
— |
|
Transaction costs related to the
CAPNA acquisition, net of tax (4) |
89 |
|
|
|
— |
|
|
817 |
|
|
— |
|
Debt retirement costs, net of tax
(5) |
|
— |
|
|
|
— |
|
|
974 |
|
|
— |
|
Business interruption proceeds, net
of tax (6) |
|
— |
|
|
(2,752 |
) |
|
— |
|
|
(2,752 |
) |
Acquisitions related amortization,
net of tax (1) |
6,030 |
|
|
3,537 |
|
|
15,449 |
|
|
10,465 |
|
|
|
|
|
|
|
|
|
Non-GAAP net income
attributable to VCA Inc. |
$ |
64,350 |
|
|
$ |
55,639 |
|
|
$ |
188,833 |
|
|
$ |
155,167 |
|
|
|
|
|
|
|
|
|
Table
#2 |
Three Months Ended |
|
Nine Months Ended |
Reconciliation
of diluted earnings per share to |
September 30, |
|
September 30, |
Non-GAAP diluted earnings
per share (1) |
|
2016 |
|
|
|
2015 |
|
|
|
2016 |
|
|
|
2015 |
|
|
|
|
|
|
|
|
|
Diluted earnings per
share |
$ |
0.71 |
|
|
$ |
0.67 |
|
|
$ |
2.06 |
|
|
$ |
1.78 |
|
Adjustments to Other Long-term
liabilities, net of tax (2) |
|
— |
|
|
|
— |
|
|
0.02 |
|
|
— |
|
Discrete tax items (3) |
|
— |
|
|
|
— |
|
|
0.01 |
|
|
— |
|
Transaction costs related to the
CAPNA acquisition, net of tax (4) |
|
— |
|
|
|
— |
|
|
0.01 |
|
|
— |
|
Debt retirement costs, net of tax
(5) |
|
— |
|
|
|
— |
|
|
0.01 |
|
|
— |
|
Impact of business interruption
proceeds, net of tax (6) |
|
— |
|
|
(0.03 |
) |
|
— |
|
|
(0.03 |
) |
Acquisitions related amortization,
net of tax (1) |
0.07 |
|
|
0.04 |
|
|
0.19 |
|
|
0.13 |
|
Non-GAAP diluted
earnings per share (7) |
$ |
0.79 |
|
|
$ |
0.68 |
|
|
$ |
2.31 |
|
|
$ |
1.88 |
|
|
|
|
|
|
|
|
|
Shares used for
computing diluted earnings per share |
81,812 |
|
|
81,795 |
|
|
81,695 |
|
|
82,744 |
|
|
|
|
|
|
|
|
|
Table
#3 |
Three Months Ended |
|
Nine Months Ended |
Reconciliation
of consolidated gross profit to |
September 30, |
|
September 30, |
Non-GAAP consolidated gross profit
(1) |
|
2016 |
|
|
|
2015 |
|
|
|
2016 |
|
|
|
2015 |
|
|
|
|
|
|
|
|
|
Consolidated gross
profit |
$ |
156,577 |
|
|
$ |
137,666 |
|
|
$ |
457,305 |
|
|
$ |
392,375 |
|
Acquisitions related amortization
(1) |
9,369 |
|
|
5,750 |
|
|
24,784 |
|
|
17,013 |
|
Non-GAAP consolidated
gross profit |
$ |
165,946 |
|
|
$ |
143,416 |
|
|
$ |
482,089 |
|
|
$ |
409,388 |
|
Non-GAAP consolidated
gross profit margin |
|
25.3 |
% |
|
|
26.0 |
% |
|
|
25.7 |
% |
|
|
25.6 |
% |
|
|
|
|
|
|
|
|
|
|
Table
#4 |
Three Months Ended |
|
Nine Months Ended |
Reconciliation
of consolidated operating income to |
September 30, |
|
September 30, |
Non-GAAP consolidated
operating income (1) |
|
2016 |
|
|
|
2015 |
|
|
|
2016 |
|
|
|
2015 |
|
|
|
|
|
|
|
|
|
Consolidated operating
income |
$ |
106,998 |
|
|
$ |
97,079 |
|
|
$ |
309,116 |
|
|
$ |
263,389 |
|
Adjustments to Other Long-term
liabilities (2) |
|
— |
|
|
|
— |
|
|
1,954 |
|
|
— |
|
Transaction costs related to the
CAPNA acquisition (4) |
146 |
|
|
|
— |
|
|
1,343 |
|
|
— |
|
Impact of business interruption
proceeds (6) |
|
— |
|
|
(4,523 |
) |
|
— |
|
|
(4,523 |
) |
Acquisitions related amortization
(1) |
10,682 |
|
|
5,811 |
|
|
26,709 |
|
|
17,195 |
|
Non-GAAP consolidated
operating income |
$ |
117,826 |
|
|
$ |
98,367 |
|
|
$ |
339,122 |
|
|
$ |
276,061 |
|
Non-GAAP consolidated
operating margin |
|
17.9 |
% |
|
|
17.8 |
% |
|
|
18.1 |
% |
|
|
17.3 |
% |
|
|
|
|
|
|
|
|
|
|
_______________________________________________ |
|
|
|
(1)
Management believes that investors' understanding of our
performance is enhanced by disclosing adjusted measures as the
reported amounts, adjusted to exclude certain significant items and
acquisition-related amortization. Non-GAAP net income, Non-GAAP
diluted earnings per common share, Non-GAAP consolidated gross
profit and Non-GAAP consolidated operating income measures are not,
and should not be viewed as substitutes for U.S. generally
accepted accounting principles (GAAP) net income, its
components and diluted earnings per share. |
|
|
(2) In the first quarter of 2016, we recorded a non-cash
charge to adjust certain long-term liabilities for $3.4 million, or
$2.0 million net of tax. $2.0 million of this amount relates
to compensation and $1.4 million relates to interest
accretion. |
|
|
(3) In the first quarter of 2016, we recorded a
tax adjustment to our income tax liabilities for $1.0 million. |
|
|
(4) As of the end of the third quarter, we have
recorded transaction costs of $1.3 million or $817,000 net of tax
related to our acquisition of CAPNA. |
|
|
(5) We incurred debt retirement costs of $1.6
million, or $974,000 net of tax, in connection with our new credit
facility, entered into on June 29, 2016. |
|
|
(6) In the third quarter of 2015, we received
insurance proceeds related to the fire that damaged the
headquarters of our Medical Technology business resulting in a net
gain of $4.5 million. |
|
|
|
(7) Amounts may not foot due to rounding. |
|
|
|
|
As of |
Table
#5 |
|
|
|
|
September 30, 2016 |
|
December 31, 2015 |
Selected
consolidated balance sheet data |
|
|
|
|
|
|
|
Debt: |
|
|
|
|
|
|
|
Senior term notes |
|
|
|
|
$ |
874,500 |
|
|
$ |
585,000 |
|
Revolving credit |
|
|
|
|
340,000 |
|
|
232,000 |
|
Other debt and capital leases |
|
|
|
|
71,236 |
|
|
55,474 |
|
Total debt |
|
|
|
|
$ |
1,285,736 |
|
|
$ |
872,474 |
|
|
|
|
|
|
|
|
|
|
Three Months Ended September
30, |
|
Nine Months Ended September
30, |
Table
#6 |
|
Selected
expense data |
2016 |
|
2015 |
|
2016 |
|
2015 |
|
|
|
|
|
|
|
|
Rent expense |
$ |
23,844 |
|
|
$ |
19,140 |
|
|
$ |
68,157 |
|
|
$ |
56,761 |
|
|
|
|
|
|
|
|
|
Depreciation and
amortization included |
|
|
|
|
|
|
|
in direct costs: |
|
|
|
|
|
|
|
Animal hospital |
$ |
21,967 |
|
|
$ |
16,465 |
|
|
$ |
60,681 |
|
|
$ |
48,808 |
|
Laboratory |
2,788 |
|
|
2,701 |
|
|
8,339 |
|
|
7,852 |
|
All other |
701 |
|
|
968 |
|
|
2,220 |
|
|
2,871 |
|
Intercompany |
(622 |
) |
|
(549 |
) |
|
(1,805 |
) |
|
(1,602 |
) |
|
$ |
24,834 |
|
|
$ |
19,585 |
|
|
$ |
69,435 |
|
|
$ |
57,929 |
|
Depreciation and
amortization included in selling, |
|
|
|
|
|
|
|
general and administrative
expense |
2,260 |
|
|
886 |
|
|
4,637 |
|
|
2,705 |
|
Total depreciation and
amortization |
$ |
27,094 |
|
|
$ |
20,471 |
|
|
$ |
74,072 |
|
|
$ |
60,634 |
|
|
|
|
|
|
|
|
|
Share-based
compensation included in direct costs: |
|
|
|
|
|
|
|
Laboratory |
$ |
201 |
|
|
$ |
144 |
|
|
$ |
559 |
|
|
$ |
468 |
|
|
|
|
|
|
|
|
|
Share-based
compensation included in |
|
|
|
|
|
|
|
selling, general and administrative
expense: |
|
|
|
|
|
|
|
Animal hospital |
831 |
|
|
644 |
|
|
2,339 |
|
|
1,981 |
|
Laboratory |
434 |
|
|
364 |
|
|
1,270 |
|
|
1,106 |
|
All other |
160 |
|
|
226 |
|
|
460 |
|
|
626 |
|
Corporate |
2,939 |
|
|
2,439 |
|
|
9,041 |
|
|
7,905 |
|
|
4,364 |
|
|
3,673 |
|
|
13,110 |
|
|
11,618 |
|
Total share-based
compensation |
$ |
4,565 |
|
|
$ |
3,817 |
|
|
$ |
13,669 |
|
|
$ |
12,086 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contact: Tomas Fuller
Chief Financial Officer
(310) 571-6505
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